The United States has charged a Canadian man with running a cryptocurrency investment scam on Discord, involving more than $42 million.

U.S. federal prosecutors have charged Canadian citizen Nathan Gauvin with operating a fraudulent investment scheme on the Discord platform, claiming to raise funds to invest in traditional financial and crypto markets, actually raising over $42 million. The indictment alleges that most of the funds were used to pay for withdrawals by existing investors, purchase luxury goods, and pay off personal credit cards. Furthermore, he allegedly falsified documents with a fintech company to obtain approximately $800,000 in credit for personal consumption. The investigation revealed that between May 2022 and October 2024, Gauvin and his accomplices directed investors to invest in Gray Digital Capital Management Inc. and its product, Gray Fund, fabricating their professional qualifications, performance, and asset size, even showing investors forged statements, claiming a fund return of up to 4384%. Gauvin was arrested in the UK on Wednesday. The U.S. Securities and Exchange Commission (SEC) has also filed securities fraud charges, noting that he submitted false documents to the SEC during the regulatory investigation. (Bloomberg)